Question

2017, one article in the Wall Street Journal had the headline: "Federal Reserve Expected to Deliver Rate Increase." Source: David Harrison, "Federal Reserve Expected to Deliver Rate," Wall Street Journal , June 14, 2017. What rate was the headline likely referring to?
(A) Federal funds rate.
(B) Commercial rate.
(C) Discount rate.
(D) Treasury rate.

Answer 1

Answer:

The correct option is A that is federal funds rate

Explanation:

Federal funds rate is the rate of interest which is charged by the banks on other banks in order to lend or give them the money from the balance of reserve on an overnight ground . And in accordance with  the law, the banks need to preserve or keep a reserve, that is equal to a particular % (percentage) of the deposits in the account at a Federal Reserve bank.

The headline is likely to address the federal funds rate in the journal.